Numerical Questions · Q14
Q.Journalising Jouranlise the following transactions in the books of Harpreet Bros.:
(a) ₹1,000 due from Rohit are now bad debts.
(b) Goods worth ₹2,000 were used by the proprietor.
(c) Charge depreciation @ 10% p.a for two month on machine costing ₹30,000.
(d) Provide interest on capital of ₹1,50,000 at 6% p.a. for 9 months.
(e) Rahul become insolvent, who owed is ₹2,000 a final dividend of 60 paise in a rupee is received from his estate.
Lakshadweep CbseNCERTSubjective· 5mImportance★★★★★est
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Start your 14-day free trial to unlock the full solution →Five adjustment entries: bad debts ₹1,000 (Rohit), goods drawn ₹2,000, depreciation ₹500, interest on capital ₹6,750, and Rahul's insolvency (₹1,200 recovered, ₹800 bad debt).
Treatment. Bad debts are a loss (Dr.), the debtor credited. Goods used by the proprietor are Drawings (Dr.), Purchases credited at cost. Depreciation is an expense reducing the asset. Interest on capital is a charge/appropriation debited to an expense and credited to Capital. On insolvency, cash actually received is debited and the shortfall is written off as bad debts.
Journal of Harpreet Bros.
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| (a) | Bad Debts A/c Dr. | 1,000 | ||
| To Rohit A/c | 1,000 | |||
| (Amount due from Rohit written off as bad debts) | ||||
| (b) | Drawings A/c Dr. | 2,000 | ||
| To Purchases A/c | 2,000 | |||
| (Goods used by the proprietor) | ||||
| (c) | Depreciation A/c Dr. | 500 | ||
| To Machinery A/c | 500 | |||
| (Depreciation @10% p.a. for 2 months on machine ₹30,000) | ||||
| (d) | Interest on Capital A/c Dr. | 6,750 | ||
| To Capital A/c | 6,750 | |||
| (Interest on capital @6% p.a. for 9 months on ₹1,50,000) | ||||
| (e) | Cash A/c Dr. | 1,200 | ||
| Bad Debts A/c Dr. | 800 |
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